Going public by way of Regulation D (504) offeringWritten by Joseph Quinones
Going public by way of Regulation D (504) offering.
Under Securities Act of 1933, any offer to sell securities must either be registered with SEC or meet an exemption. Regulation D (or Reg D) provides three exemptions from registration requirements, allowing some smaller companies to offer and sell their securities without having to register securities with SEC. Rule 504 or Regulation D provides an exemption from registration of federal securities laws for some companies when they offer and sell up to $1,000,000.00 of their securities in any 12 month period. . A company can use this exemption so long as it is not a Blank Check company and does not have to file reports under Securities Exchange Act of 1934. Also, exemption generally does not allow companies to solicit or advertise their securities to public, and purchasers receive restricted securities, meaning that they may not sell securities without registration or an applicable exemption. Rule 504 does allow companies to make a public offering of freely tradable securities but only if one of following circumstances is met:
(1) The company registers offering exclusively in one or more states that require a publicly filed registration statement and delivery of a substantive disclosure document to investors; (2) A company registers and sells offering in a state that requires registration and disclosure delivery and also sells in a state without those requirements, so long as company delivers disclosure documents required by state where company registered offering to all purchasers (including those in state that has no such requirements); or (3) The company sells exclusively according to state law exemptions that permit general solicitation and advertising, so long as company sells only to "accredited investors. . An accredited investor is defined by federal securities law as: . a bank, insurance company, registered investment company, business development company, or small business investment company; . an employee benefit plan, within meaning of Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes investment decisions, or if plan has total assets in excess of $5 million; . a charitable organization, corporation, or partnership with assets exceeding $5 million; . a director, executive officer, or general partner of company selling securities; . a business in which all equity owners are accredited investors; . a natural person who has individual net worth, or joint net worth with personís spouse, that exceeds $1 million at time of purchase; . a natural person with income exceeding $200,000 in each of two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of same income level in current year; .Any trust with total assets in excess of $5,000,000, not formed for specific purpose of acquiring securities offered, whose purchase of securities is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating merits and risks of prospective investment.
kentucky-fha-loanWritten by SWAPNA
Have you spotted your dream home but do not have sufficient savings to meet required down payments. Kentucky FHA loans allow you to become homeowners with down payments as low as 2% - 3%. Read on for comprehensive information about purchasing best FHA loans in Kentucky at lowest cost from a reliable state mortgage lender.
Purchasing Kentucky FHA Loan
FHA (Federal Housing Administration) is a division of Department of Housing and Urban Development, which insures residential mortgage loans made by private lenders as per specified mortgage underwriting standards. Since FHA insures Kentucky FHA loans, lenders charge lower interest rates on this type of home loans compared to conventional mortgages.
If you belong to low or moderate income families and are looking to become homeowners in Kentucky then inquire about Kentucky FHA loan programs. Kentucky FHA mortgages require lower down payments and closing costs and offer maximum flexibility during mortgage underwriting. Also, you can make use of gift funds to make down payments. Moreover, FHA allows you to consider entire income of non-occupant co-borrowers for income qualifying purposes.
However, Prior to purchasing Kentucky FHA loan find out maximum loan amount allowed on such loans in your particular county. Maximum loan amount, including closing costs should not exceed maximum limit set by FHA. Most Kentucky FHA mortgage lenders will require you to take out private mortgage insurance (PMI) equaling 1.50% of property purchase price at a renewal premium of around .500% during successive years. However, one advantage is that your upfront costs of buying home is reduced as closing cost can be financed along with mortgage loan amount, which helps to reduce your initial burden.